FCC Seeks Comment on Reforms to USAC Operations and Oversight

The Federal Communications Commission (FCC or Commission) has released a Public Notice seeking comment on potential reforms to the Universal Service Administrative Company (USAC), the private not-for-profit corporation that administers the Universal Service Fund (USF) programs. This is the first wide-ranging review of USAC’s operations in many years and signals a broad interest by the Commission in strengthening efficiency, accountability, and transparency across the organization.

The Commission is casting a broad net as it seeks comments on USAC operations and governance with the goal of strengthening internal processes, improving management structure, and ensuring the Commission’s oversight framework reflects current best practices for accountability and transparency. Stakeholders have been asked to weigh in on:

Current State and Operations — How USF administration can be made more efficient, what process improvements are most needed, and what barriers exist to meaningful reform;

Internal Management — Whether existing USAC processes create undue delays for program participants and whether clearer deadlines or “shot clocks” for USAC action would improve responsiveness;

Audits and Fund Recovery — Whether audit and recovery processes should be streamlined and made uniform across USF programs, and whether statistical sampling and extrapolation methodologies should be codified program-wide;

Annual Audit and MOU — What changes, if any, should be made to USAC’s annual independent audit, and whether the FCC-USAC Memorandum of Understanding should be updated — including whether it should require USAC to submit a proposed annual budget; and

Board Composition and Conflicts of Interest — Whether the USAC Board’s size, stakeholder representation, nomination and removal processes should be modified, and how the FCC should strengthen conflict-of-interest rules for Board members.

Comments are due May 15, 2026.

JSI strongly encourages providers to participate directly in this proceeding. Comprehensive reviews of USAC’s operations are exceedingly rare and your feedback could shape how USF programs are administered for the foreseeable future.

Carriers that have experienced firsthand frustrations with USAC processes are in a uniquely powerful position to inform these reforms, and individual provider voices carry significant weight with the Commission. If your company has encountered challenges such as unexplained delays in funding disbursements, burdensome or inconsistent audit processes, difficulties resolving red light status, challenges navigating USAC’s appeals and recovery procedures, lack of responsiveness from USAC program staff, or administrative processes that seem disconnected from the operational realities of smaller providers, this is the proceeding to share actionable recommendations for improvement.

JSI is ready to assist in preparing and submitting comments that clearly and effectively present your experiences and recommendations. If you are ready to participate in these comment proceedings, please contact Celia Lewis or Brett Hallagan.